[ad_1]
Mon, 02 Jul 2018 – 5:50 AM
Hong Kong
A CHINESE e-commerce site called Pinduoduo, or DP, plans to raise at least 1 billion US dollars in a initial public offering for US savings. The Shanghai-based firm saw its turnover more than triple to US $ 278 million in 2017, according to its filing with the Securities and Exchange Commission of the United States, under the name Walnut. Street Group Holding Limited. Losses rose 55% to $ 79.5 million and trading volumes reached 141.2 billion yuan ($ 29.06 billion).
PDD has become one of the fastest growing startups in China by creating a kind of Facebook-Groupon mashup. treats products such as fruits, clothes or toilet paper, and then recruits friends to buy them at a reduced price. It offers goods up to 20% cheaper than the market price by allowing consumers to buy directly from manufacturers, removing middlemen, advertising and acquisition costs.
The company was founded by Colin Huang, a former Google engineer. Sequoia Capital China as a lender.
Pinduoduo saw its valuation jump about 10 times during its previous fundraiser in April. He has raised more than 1 billion US dollars, worth about 15 billion US dollars, said people familiar at the time.
In addition to its reputation for low prices, DP has benefited from a broad base of users in lower-tier cities. The idea behind PDD is to give people a different experience than traditional e-commerce sites like Amazon.com or Alibaba, where buyers tend to plug in a keyword, then pick an article after sorting a few options.
Pinduoduo's Daily active users surpassed those of JD.com in January and reached 55.9 million in June, according to a study by Jiguang consultant based in Shenzhen. The Taobao application of Alibaba had 172 million daily active users and 34.3 million Jordanian dinars, he said.
Huang started his career in Silicon Valley before returning home to become a serial entrepreneur. Its application is supposed to look more like a digital version of shopping at the mall with friends, where you can share ideas and get feedback from people you trust. BLOOMBERG
[ad_2]
Source link
